Cameron Hughes Wine has raised an undisclosed amount of mezzanine funding from Bacchus Capital Management, a San Francisco-based provider of mezza and equity capital to wineries and wine businesses.
Bacchus Capital Management, LLC, a San Francisco-based investment firm providing mezzanine and equity capital to wineries and wine businesses, has provided mezzanine financing to Cameron Hughes Wine, a wine negociant sourcing super- and ultra-premium wine worldwide. The financing takes the form of a second lien five-year loan. This is the first transaction for Bacchus Capital Management.
“This financing for Cameron Hughes Wine reflects the Bacchus Capital Management mission and clearly illustrates the opportunity for us in the market today. There is an increasing demand for wine, especially super- and ultra-premium brands, and a growing need for capital and industry experience,” said Sam Bronfman II, Co-Founder and Managing Partner of Bacchus. “The opportunity to finance an innovator at the premium end of the wine industry and one of the fastest growing private companies in America is an ideal first transaction for us.”
“We are proud of Bacchus Capital Management’s great confidence in the strength of our business. Bacchus will provide us with the working capital we need to expand our inventory, organization and distribution so that we can continue our strong record of growth,” said Cameron Hughes, Founder and President of Cameron Hughes Wine. “The team from Bacchus comes to us with more than money. They have great industry experience and skill that we will be able to leverage.”
“We are excited to provide capital for Cameron Hughes Wine underneath its traditional bank loan, something we expect to do with regularity in these challenging financial markets,” commented Peter Kaufman, Co-Founder and Managing Partner of Bacchus Capital Management. “In today’s roiled financial markets and constrained credit environment, Bacchus can be uniquely helpful in solving liquidity needs for wineries. Our flexible financing enables wineries and wine businesses to maintain control of their equity and to access capital beyond what can be accessed through the traditional bank-based asset formulas tied to inventory and receivables. When coupled with the unparalleled operational expertise and relationships in the wine industry that our team offers to our portfolio companies, we think Bacchus has established a new model in the industry,” Kaufman added.
About Cameron Hughes Wine
Cameron Hughes Wine purchases finished wines from high-end international wineries and bottles them under a variety of brands, which are sold exclusively through large retailers, such as Costco and Sam’s Club, as well as through a national network of distributors and direct consumer sales. The Company’s primary brand is the Cameron Hughes ‘Lot’ series. Cameron Hughes Wine was listed as the 18th fastest growing privately held businesses by the Inc. 500/5000 September 2008 issue. The Company was founded on the concept that excellent wine should be available at a value price. For more information, visit www.chwine.com.
About Bacchus Capital Management
Bacchus Capital Management is an investment firm co-founded in 2007 by Sam Bronfman II, Peter S. Kaufman and Henry F. Owsley providing mezzanine and equity capital to United States wineries and wine businesses which have significant growth potential. Mike Jaeger is the President. Bronfman and Jaeger bring extensive wine industry experience through leadership positions at Seagram Chateau and Estates, Diageo, Trinchero Family Estates (Sutter Home Winery), Constellation Brands and Vincor International. Kaufman and Owsley are leading investment bankers specializing in credit analysis, valuation and restructuring. As part of its relationship with borrowers, Bacchus offers the wine operating expertise and unparalleled wine industry distribution network of its principals. For more information, visit www.bacchuswinefund.com.